Camel Volume Dropped by 3.5%
Reynolds American (RAI) revealed several days ago that R.J. Reynolds’ local cigarette volume shipments in the course of the three months have boosted by 30.2 % on those of the three months for the same period of 2014. The raise took place as a result of RAI’s purchase on June 12 of Lorillard and its Newport brand, and in spite of RAI’s having to pass its Winston, KOOL and Salem brands to Imperial Tobacco as by agreement.
Reynolds’ growth brands volume increased by 74.3 %. Camel volume dropped by 3.2 % to 5.5 billion and Pall Mall's by 6.9 % to 5.1 billion. Other cigarette brand volume declined by 67.0 % to 1.7 billion. Premium brands volume on the contrary has increased by 56.4 % to 14.8 billion while value brands volume dropped by 6.5 % to 6.3 billion.
Reynolds’ market share in the course of the three months dropped by 0.1 of a percentage point in comparison to that of the three months to the end of September 2014. The share performed by Camel was the same at 8.3 %, while that of Pall Mall dropped by 7.8 %, giving Reynolds a growth-brand share of 29.4 %. The share presented by other brands decreased by 2.5 %.
RAI’s net sales for the three months to the end of September have decreased by 41.1 % in comparison to those of the three months to the end of September 2014. “Our operating agencies provided great key-brand overall performance in the 3Q, and that made it easier for us to generate further profits in Reynolds American’s net sales, earnings and margin,” stated Susan M. Cameron, president and chief executive officer of RAI.“Along with these solid results, I’m glad to report that the integration of Newport is moving smoothly. Despite the route to market constraints on retail merchandising in place through mid-November, Newport is showing reliable marketplace momentum, and R.J. Reynolds’ consumer marketing and sales groups are dedicated to figuring out more growth opportunities for the brand.”